Tariffs and Parts (no politics please, go use the off-topic one)

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Apr 16, 2025 | 09:23 AM
  #1  
So, this Reddit post confirms that Mercedes is standing pat for 2025. It also confirms part prices are affected. However, it appears that tariff-induced price increases are coming for the 2026 MY. I would purchase a 2025 MY right now versus risk waiting for a 2026 model.

https://www.reddit.com/r/mercedes_benz/s/lc31uyjN8K

So, I feel pretty good purchasing that pre-paid maintenance. I knew it was a hedge against inflation but now it’s a hedge against tariffs.
Reply 0
Apr 16, 2025 | 09:34 AM
  #2  
Glad to see that other one moved to political discussions subforum where it belongs. It was kinda boring with most of you busy with politics in that thread, given that we are in a car forum lol. Back on topic now : )
Reply 0
Apr 16, 2025 | 10:09 AM
  #3  
As I was reading your post, I did a quick review of the 3 Mercedes dealers (and 2 BMW dealers) that are within 300 miles radius from me, which I know and always track very well.

I've been checking in their inventories almost every weekend for the past few years, often taking a look at their X7, GLS, EQS and W223, and X6 inventory, so I can track the market well and understand the pricing structure given how often I trade in. I can see two new-listings of pre-owned GLS and one EQS added to the inventory by these 3 dealers in the past 1-2 weeks. Each one of these 3 is at least 10K higher than the previous average listing price for the same year and condition. They are asking 73K for a GLS that was often in the low 60s for that mileage and age. I can see the EQS in the mid 70s when their last EQS with similar mileage and year was in the 60s. I haven't seen any other recent posting for X7/X6 which I have been tracking very well, but will keep an eye on those. \

Conclusion is: I can see at least based on these 3 new listing that Mbenz dealers are asking 15% more or so more for their pre-owned inventory. Over the years, their asking price was very consistent as if they are using a formula, and only drops slowly for a given model year. These 3 cars now with at least 10K higher asking price than normal is definitely an indication that they'd be making more money now from their pre-owned inventory even though the brand-new ones are still offered for the same original MSRP.

Also keep in mind most dealers will offer 5-8% discount on brand-new cars. I guess that won't be the case now. My BMW dealer would often offer me 8-9% off MSRP on any of their new-car inventory, and anywhere in the range of 10-15% of some of their stupid models that are very hard to move like the XM and i7. Am pretty sure that won't be the case now.
Reply 0
Apr 16, 2025 | 10:31 AM
  #4  
Quote: As I was reading your post, I did a quick review of the 3 Mercedes dealers (and 2 BMW dealers) that are within 300 miles radius from me, which I know and always track very well.

I've been checking in their inventories almost every weekend for the past few years, often taking a look at their X7, GLS, EQS and W223, and X6 inventory, so I can track the market well and understand the pricing structure given how often I trade in. I can see two new-listings of pre-owned GLS and one EQS added to the inventory by these 3 dealers in the past 1-2 weeks. Each one of these 3 is at least 10K higher than the previous average listing price for the same year and condition. They are asking 73K for a GLS that was often in the low 60s for that mileage and age. I can see the EQS in the mid 70s when their last EQS with similar mileage and year was in the 60s. I haven't seen any other recent posting for X7/X6 which I have been tracking very well, but will keep an eye on those. \

Conclusion is: I can see at least based on these 3 new listing that Mbenz dealers are asking 15% more or so more for their pre-owned inventory. Over the years, their asking price was very consistent as if they are using a formula, and only drops slowly for a given model year. These 3 cars now with at least 10K higher asking price than normal is definitely an indication that they'd be making more money now from their pre-owned inventory even though the brand-new ones are still offered for the same original MSRP.

Also keep in mind most dealers will offer 5-8% discount on brand-new cars. I guess that won't be the case now. My BMW dealer would often offer me 8-9% off MSRP on any of their new-car inventory, and anywhere in the range of 10-15% of some of their stupid models that are very hard to move like the XM and i7. Am pretty sure that won't be the case now.
Thanks for posting:

I think until the tariff situation is spelled out we are in a period similar to what we all experienced during Covid: Limited inventory of both new and used cars. Dealers will try to get as much for their cars as possible.

For those who must buy now they have no choice. For anyone who can wait, that I would think would be prudent. People who buy now and do not have to when it comes time to either trade in or sell, (which eventually is everyone) based on what they paid, they will be extremely disappointed.

I will be taking my own advice: The extended warranty on my 2019 E450 ends in December, 2025. In September/October I was planning on ordering a 2026 to be delivered in December. Now I plan to wait. Hopefully, I will not have any major problems starting in January 2026 after my extended warranty has expired!

Just my $.02.
Reply 0
Apr 16, 2025 | 11:01 AM
  #5  
MY26 will have significant updates to S and C classes, and some technological changes in E class. So from that perspective it's good to wait.
Reply 1
Apr 16, 2025 | 02:11 PM
  #6  
Quote: Thanks for posting:

I think until the tariff situation is spelled out we are in a period similar to what we all experienced during Covid: Limited inventory of both new and used cars. Dealers will try to get as much for their cars as possible.

For those who must buy now they have no choice. For anyone who can wait, that I would think would be prudent. People who buy now and do not have to when it comes time to either trade in or sell, (which eventually is everyone) based on what they paid, they will be extremely disappointed.

I will be taking my own advice: The extended warranty on my 2019 E450 ends in December, 2025. In September/October I was planning on ordering a 2026 to be delivered in December. Now I plan to wait. Hopefully, I will not have any major problems starting in January 2026 after my extended warranty has expired!

Just my $.02.
Drove through a local automall after a run to Costco last night. Inventory looks down.
Reply 0
Apr 16, 2025 | 02:49 PM
  #7  
Quote: As I was reading your post, I did a quick review of the 3 Mercedes dealers (and 2 BMW dealers) that are within 300 miles radius from me, which I know and always track very well.

I've been checking in their inventories almost every weekend for the past few years, often taking a look at their X7, GLS, EQS and W223, and X6 inventory, so I can track the market well and understand the pricing structure given how often I trade in. I can see two new-listings of pre-owned GLS and one EQS added to the inventory by these 3 dealers in the past 1-2 weeks. Each one of these 3 is at least 10K higher than the previous average listing price for the same year and condition. They are asking 73K for a GLS that was often in the low 60s for that mileage and age. I can see the EQS in the mid 70s when their last EQS with similar mileage and year was in the 60s. I haven't seen any other recent posting for X7/X6 which I have been tracking very well, but will keep an eye on those. \

Conclusion is: I can see at least based on these 3 new listing that Mbenz dealers are asking 15% more or so more for their pre-owned inventory. Over the years, their asking price was very consistent as if they are using a formula, and only drops slowly for a given model year. These 3 cars now with at least 10K higher asking price than normal is definitely an indication that they'd be making more money now from their pre-owned inventory even though the brand-new ones are still offered for the same original MSRP.

Also keep in mind most dealers will offer 5-8% discount on brand-new cars. I guess that won't be the case now. My BMW dealer would often offer me 8-9% off MSRP on any of their new-car inventory, and anywhere in the range of 10-15% of some of their stupid models that are very hard to move like the XM and i7. Am pretty sure that won't be the case now.
Yikes, so fair to say this is a worse situation than chip shortage and ADM?
Reply 0
Apr 16, 2025 | 07:10 PM
  #8  
So, I know MSRP’s tend to go up each year no matter what, but how much of 26’s price increase will be tariff related.

I did search for past MSRPs and, using the base S500 as an example.

2021 S500: $109,800
2022 S500: $112,150
2023 S500: $115,650
2024 S500: $117,300
2025 S500: $117,750

The largest year-over-year price increase was $3,500 in 2023. The average yearly price increase was $1,988. I’m surprised how little the 2024 to 2025 increase was. The huge 2022 to 2023 increase wasn’t surprising considering that was during the teeth of inflation and car shortage madness. Let’s see what happens in 2026 due to Tariffs and inflation.
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Apr 16, 2025 | 07:17 PM
  #9  
Quote: So, I know MSRP’s tend to go up each year no matter what, but how much of 26’s price increase will be tariff related.

I did search for past MSRPs and, using the base S500 as an example.

2021 S500: $109,800
2022 S500: $112,150
2023 S500: $115,650
2024 S500: $117,300
2025 S500: $117,750

The largest year-over-year price increase was $3,500 in 2023. The average yearly price increase was $1,988. I’m surprised how little the 2024 to 2025 increase was. The huge 2022 to 2023 increase wasn’t surprising considering that was during the teeth of inflation and car shortage madness. Let’s see what happens in 2026 due to Tariffs and inflation.
For what it is worth:

The MSRP on the my 2019 E450 was just over $70,000. A similarly equipped 2025 E450 is $76,000. The increase over 6 years is substantially less than inflation.
Reply 0
Apr 16, 2025 | 08:24 PM
  #10  
Is anybody looking at American made vehicles to see what—if any—price increases are currently happening? Just curious.
Reply 0
Apr 16, 2025 | 08:46 PM
  #11  
Yeah, I noted the Yukon Denali and Escalade MSRP just for my own curiosity. I know GMC has a lot of parts made across both borders under the previous free-trade, no-tariff either way arrangement.

2025 Yukon Denali Ultimate MSRP @ $103,995
2025 Cadillac Escalade Premium Luxury Platinum MSRP@ $122,095

Let’s see what 2026 brings.
Reply 0
Apr 16, 2025 | 09:02 PM
  #12  
Quote: Yeah, I noted the Yukon Denali and Escalade MSRP just for my own curiosity. I know GMC has a lot of parts made across both borders under the previous free-trade, no-tariff either way arrangement.

2025 Yukon Denali Ultimate MSRP @ $103,995
2025 Cadillac Escalade Premium Luxury Platinum MSRP@ $122,095

Let’s see what 2026 brings.
Are those prices higher than a month ago?
Reply 0
Apr 16, 2025 | 09:35 PM
  #13  
I don’t believe so. But supply-chain tariffs usually don’t appear overnight as most manufacturers prepaid months (or longer) in advance and/or have an existing inventory of parts on hand for build projections. It might take a little time before we start seeing the effects of any price changes in the supply chain due to how these logistical supply chains work.

Also, with the 2026 model year right around the corner, it wouldn’t surprise me if we see no changes to the 2025 model year. I think the MSRP for the 2026 MY will be a better tell.

Reply 2
Apr 18, 2025 | 10:05 PM
  #14  
Voelk has a video up on the NYAS: Paraphrasing here, he said a few brands were missing, but what's really missing, is pricing. Not to be seen anywhere.
Reply 0
Apr 19, 2025 | 03:41 PM
  #15  
I read an article that Ford is expected to raise prices in June if the existing Canada/Mexico tariffs remain in place. Also, car insurance rates are expected to rise as well simply due to increased part prices. Skyrocketing insurance rates without tariffs is bad enough. This would be like salt in a wound.

https://finance.yahoo.com/personal-f...210219360.html
Reply 0
Apr 19, 2025 | 05:47 PM
  #16  
There was never any chance the insurance companies were going to absorb costs; with any level of increased tariffs.
Reply 0
Apr 19, 2025 | 06:18 PM
  #17  
Makes me I glad I just changed carriers to reduce my premium. Unfortunately, just for 6 months.
Reply 0
Apr 19, 2025 | 07:59 PM
  #18  
I got a 250 dollar bump up a few weeks before the tariffs hit, so I've got a little time before the tariff pricing kicks in. The insurance hike is probably more insult, than injury, to the people hanging in this section of the forum; but kids starting out, people working on a wage, they're going to feel it.
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